Saturday, September 12, 2009

Buy Cairn India

The company is set to emerge as one of India’s leading petroleum producer - and possibly the largest onshore producer - once its oilfields in Rajasthan reach peak production in coming years. Higher production will boost revenue in the coming quarters. Going ahead, the profits are likely to show astonishing returns on year on year basis, assuming that the company would be able to meet its production targets and there would not be any major negative movement in crude prices and no substantial appreciation in rupee from current levels. So, we recommend to buy this stock and hold for a period of 1-2 years with target price of Rs 375.